James Whitner investigated with resale scheme of $32 million

Unveiling alleged money laundering scheme in sneaker reselling

A recent civil forfeiture complaint filed in a North Carolina district court has thrust James Whitner, owner of sneaker retail giants A Ma Maniére and Social Status, into the spotlight. The complaint alleges that Whitner has been involved in reselling millions of dollars' worth of sneakers to Chinese nationals as part of an illicit money-laundering operation. According to prosecutors, the operation disguised illegal proceeds under the guise of legitimate sneaker and apparel transactions, effectively funneling cash into the banking system.
 

Seizure and alleged money transmitting business

The focal point of the forfeiture action revolves around $1,199,530 in cash seized from the apartment of Whitner's close associate, Antwain Freeman, in August 2021. Prosecutors claim that this money played a role in an unlicensed money transmitting business involving Chinese money couriers, implicating Whitner, Freeman, and others in the alleged scheme.
 

Whitner's response in denial and cooperation

Despite the serious allegations, Whitner, whose company, the Whitaker Group, oversees his sneaker retail empire, is not facing criminal charges. The Whitaker Group released a statement maintaining their adherence to tax laws and expressing cooperation with the government. The statement asserts that the allegations are unfounded, unrelated to their business or community, and unjustified.
 

Nike collaboration and contract violation

The civil complaint reveals that Whitner resold products from an unnamed Oregon-based sneaker company, breaching a contract prohibiting sales outside the U.S. or resale to other distributors. Notably, Nike, headquartered in Oregon and Whitner's primary collaborator, has not responded to requests for comment. The Whitaker Group's statement implies that Nike has stood by them during the ongoing investigation.

Alleged collusion of sneaker sales and money laundering

The complaint details the collaboration between Freeman, Whitner, and a Chinese money-laundering operation aimed at benefiting Whitner's businesses. The alleged modus operandi involves reselling sneakers to Chinese purchasers, who pay brokers for the products. Chinese money couriers, directed by the broker, reportedly collected cash from individuals engaged in illegal activities, including some believed to be involved in prostitution.
 

Whitner's Stand and defending the legacy

In response to the complaint, the Whitaker Group emphasizes its commitment to supporting people of color and contends that its work is under attack despite engaging with the U.S. Attorney's Office. The statement asserts the company's determination to defend its business model and continue contributing to culture, commerce, and the community.
 

A detailed scheme that required couriers, payments, and transportation

The complaint meticulously outlines the alleged money-laundering scheme, involving Whitner, Freeman, and Chinese national "YG." It describes a process where YG would purchase sneakers from Whitner, brokers would collect payments, and money couriers would amass cash from various sources, including individuals involved in illegal activities. The money would then be delivered to Freeman, who allegedly played a key role in the transactions.

Whitner's awareness and financial manipulation

Court documents suggest that Whitner was aware of irregularities in his reselling business. The complaint cites a "consensually monitored phone call" in July 2022 between Freeman and Whitner, during which they discussed Freeman's arrest and the seizure of $50,000 meant for a transaction with YG. Whitner expressed suspicion, stating he "had a feeling some fishy shit was going on."

As the investigation unfolds, the sneaker industry watches closely, awaiting further developments in this intricate web of allegations and financial transactions.